Can My Insurance Company Cancel My Coverage?

Different situations can cause your health care provider to cancel your insurance and deductibles without suffering any associated penalties. These circumstances can change contingent on the type of coverage of which you have signed up, so it is essential that you read your policy in its entirety so you can be apprised of any situations that could cause you to lose your health benefits.

Losing Your Insurance Coverage

One of the main reasons behind the loss of health insurance coverage is the fact that consumers fail to make their monthly premium payments. Many insurance companies offer grace periods of which you can use to make your monthly premiums, but if you forget to pay or fall behind, your policy will get revoked.

Incomplete payment amounts will not keep your policy in effect, so if you can’t pay your amounts due in full you should speak with a customer service rep at your insurance company as quickly as possible to see if there is a way to get a more affordable policy.

Another reason for cancelled insurance coverage is if the insurance provider finds out that you’ve given them false information during the application process. This can range from lying about your finances to keeping various health problems a secret in order to avoid higher premiums. Even in the case of unintentionally providing false information, your coverage can be cancelled by your insurance provider. So, you always want to be meticulous when going through the application process and double check all of your answers prior to submitting your application.

In case your health takes a turn for the worse, you acquire a smoking habit or your financial status changes when your policy is in effect, your insurance cannot be cancelled. Despite that, your insurance company can decide not to extend coverage to you in the form of a policy renewal when your old contract ends. Your insurance provider can also increase the cost of your insurance policy if it is proven that you require more medical care than in the past. Keep in mind various situations that might lead you to need a new policy before your health insurance ends so that you can plan accordingly.

A lot of consumers have insurance coverage through their jobs, so if you quit your job, you can also lose any associated health benefits. If the company that you are working with is local, you can also lose your benefits if you relocate out of the health care provider’s jurisdiction. Before you change jobs, keep a plan in mind on what to do to secure a new policy once your old one is no longer valid.

Knowing The Rights You Have

Some insurance companies follow a practice known as rescission, which translates to their ability to claim that your insurance policy has been retroactively cancelled in case you develop a medical problem that will necessitate expensive medical care. This also means that the insurance provider can claim no responsibility in paying your previous medical bills since the date of retroactive cancellation. Many good insurance companies won’t follow in this practice and it has been made illegal, so you should seek out the assistance of an attorney if you feel that your insurance policy was cancelled unfairly.